In my earlier post about film incentives, the story noted that the video game industry was a big player in getting those funds. They’re set to get more of them now.
In an effort to keep attracting video game jobs to Texas, the Texas Film Commission will boost incentives for the gaming industry to a level equivalent to those given to film and television projects.
Under the new rules, video game companies can apply for grants that will reimburse them up to 15 percent “of eligible in-state spending paid to Texas residents” — up from 5 percent previously.
The changes will take effect Aug. 28, timed to coincide with the commission’s new fiscal year, which starts Sept. 1. Film Commission director Evan Fitzmaurice said the increase is a recognition of the economic impact that video game jobs have had in Texas.
He pointed to publisher Electronic Arts’ recent announcement that it would expand its presence in Austin, bringing 300 jobs and a division of its famed EA Sports studio.
“These are great jobs for Texas,” Fitzmaurice said.
[…]
A report last year from the state comptroller’s office shows the gaming industry has created a disproportionately large amount of spending and jobs.
From April 2009 to August 2010, the Film Commission awarded more than $48 million to 260 applicants. About $9 million of that went to 58 gaming applications, according to the comptroller’s report.
“While making up only 19 percent of the grant receipts, the game industry is responsible for 41 percent of the spending and 45 percent of jobs created,” the report said.
My objections remain the same. These were jobs that were going to be created anyway. Having states compete against each other by throwing money at the corporations to get them to do in their state what they were going to do somewhere is a race to the bottom and a needless subsidy of an industry that doesn’t need it. Given that this is the world we live in, I can understand the allure for a given state, but the data here doesn’t help me understand just what the costs and benefits of this are. But even if I could, I’d still consider it a waste.